The Recommerce market represents a flourishing trend characterized by rapid growth and customer satisfaction derived from accessing a diverse range of high-quality and functional products at highly competitive prices. This market dynamic plays a pivotal role in bolstering the sustainability of the retail industry.
Recommerce, also known as the “resale” or “secondhand” market, refers to the buying and selling of pre-owned goods. It involves the process of reselling used items, typically through online platforms or physical stores, where individuals or businesses can sell products they no longer need or want. These items can range from clothing and accessories to electronics, furniture, books, and more.
Recommerce has gained significant popularity in recent years due to various factors, including growing environmental awareness, cost-effectiveness, and the desire for unique and vintage items. It offers an alternative to traditional retail, allowing consumers to extend the lifecycle of products and reduce waste. Additionally, e-commerce platforms provide opportunities for individuals to earn money by selling their used items, while buyers can access quality products at lower prices compared to buying new ones.
According to a recent report by Thredup, the Recommerce market has already captured a significant portion of the total fashion market, amounting to 9%. This demonstrates the growing popularity and acceptance of Recommerce as a viable alternative to traditional retail. Furthermore, the report predicts that the Recommerce market is poised for continued expansion, with expectations of reaching 18% of the total fashion market by the year 2030.
Based on the report from PRN, the re-commerce market experienced remarkable growth in 2021, expanding at a rate twice as fast as the wider retail market. This signifies the increasing popularity and acceptance of e-commerce as a viable and thriving sector. The report further forecasts substantial growth projections for the e-commerce market, with an estimated value of $178 billion in 2022 and a projected value of $289 billion by 2027.
This projected growth indicates the immense potential and value that Recommerce holds within the fashion industry. As consumers increasingly prioritize sustainability and cost-effectiveness, Recommerce platforms provide an attractive proposition by offering pre-owned, high-quality fashion items at more affordable prices. By tapping into this market trend, retailers and fashion brands can position themselves to capitalize on the growing demand for secondhand clothing and accessories.
The global shift towards sustainability is well underway, and the adoption of pre-owned items of clothing online plays a crucial role in this transition. When compared to the production of new clothing, the purchase and use of pre-owned items offer substantial environmental benefits. The data shows that choosing pre-owned clothing significantly reduces carbon emissions, energy demand, and water consumption by approximately 84%, 88%, and 98%, respectively.
Advancements in technology and the emergence of online marketplaces have greatly facilitated the growth of e-commerce. This platform offers sellers a convenient and accessible means to reach a wider audience, while buyers can easily find cost-effective alternatives to new products. Overall, e-commerce holds significant and beneficial potential in the future.